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Premium Alcoholic Beverages Increase On-Premise Sales

A restaurant or a bar that does not have a Texas beer license is leaving a great deal of money on the table. You may have neglected to obtain this essential document because the process is difficult, but Texas license services can help you secure the license and permits that you need. Before you apply for your Texas alcoholic beverage license, contact an alcoholic beverage licensing service to help you identify what licenses and permits will be needed for your business and to make the filing process easier.

Technomic’s 2013 BarTAB Report

Technomic, Inc. is a consulting firm that performs research on trends in the food industry. This Chicago-based research firm released its 2013 BarTAB Report last year in which the company outlined several interesting findings. One is the fact that more people are buying premium spirits and beers in on-premise restaurants and bars.

As the economy recovers, people continue to spend their money very carefully. However, they are purchasing more expensive beverages in current days than they have in the past. Technomic discovered this trend in 2012 when its researchers learned that the on-premise channel grew to 1.9 billion gallons of alcohol. Sales also increased by 3.5 percent to reach $97.3 billion. For 2013 and 2014, researchers predicted that the amount of alcohol that people consume would decline, but they also believed that the amount of money spent on alcoholic beverages would continue to grow.

An Explanation for Opposing Trends

Technomic’s director of research Eric Schmidt explained how volume could decrease but the amount of money spent on alcoholic beverages could increase. He states that people are taking fewer trips to bars and restaurants because they are spending conservatively. At the same time, they are interested in experiencing more sophisticated flavors, and this requires that they seek more expensive drinking choices. Some of these more expensive choices include craft beer, imported vodka and single-malt Scotch.

Technomic explained the trends another way. In the report, researchers stated that half of the sales of alcoholic beverages transpired in the on-premise channel. It also stated that one-quarter of the volume was consumed in bars and restaurants. Furthermore, Technomic researchers found that beer tops the category of the drink that is chosen most often by bar and restaurant patrons. It is also the beverage that earns the most money. In 2011, beer consumption decreased, but by 2012, this beverage started to make a comeback. However, it appears to be limited to certain types because in 2013, sales for major domestic beers continued to decline.

The Competition between Spirits, Beer and Wine

Beer has been doing very well recently, but spirits have been showing even greater improvement in bars and restaurants. In 2012, sales of spirits grew faster than any other beverage. Volume increased by 1.9 percent, and the amount sold in dollars increased by 5.6 percent. Technomic researchers believed that sales of spirits would be flat at the end of 2013. They also noted that sales of several high-end beverages are continuing to increase. Overall, wine sales are declining, except for one segment. Domestic table wine continues to be very popular, and more people are purchasing and drinking these wines on an increasing basis.

According to Technomic, whiskey categories collectively outperformed non-whiskey categorieswhen people make their way into bars and restaurants, and this appears to be due to the choices of the millennial generation. Specifically, this population is choosing between spirits and craft beers when they go out because they are seeking a particular flavor, or they are celebrating an occasion. In other words, they are not married to any particular type of drink, so they have a wide array of options open to them. As time marches on, they will continue to be the impetus of the major trends in the beverage industry.




Changes To The Texas Mixed Beverage Tax Surety Bond

If you have a Texas alcoholic beverage license, it is important for you to know about changes to the Texas’ mixed beverage tax laws. Now that House Bill 3572 is in full effect, you will be paying a much lower mixed beverage gross receipts tax rate. Before January 1 of this year, the rate was 14 percent. Now, it is only 6.7 percent.

The Mixed Beverage Sales Tax

Although the mixed beverage gross receipts tax rate has declined, the new legislation adds another tax: the 8.25 percent mixed beverage sales tax. This tax applies to mixed beverages, including the wine, ale, beer and distilled spirits that you sell, prepare or serve in your establishment. It also includes any non-alcoholic beverages that you mix with alcoholic beverages that will be consumed at your place of business. Lastly, it applies to the ice that is used to make alcoholic beverages that customers drink on the premises.

The Mixed Beverage Sales Tax Surety Bond

Before this new law went into effect, proprietors with a Texas beer license only had to post a mixed beverage gross receipts tax surety bond in the amount of $7,500. Currently, you must continue to post the aforementioned bond, but you are required to post the mixed beverage sales tax surety bond as well.

The exact amount of these bonds is going to depend on your individual tax filing. After this initial number has been calculated, officials will figure the final amount by taking your personal credit score and other financial considerations into account.

Passing the Cost onto Your Customers

You will not be permitted to pass the mixed beverage gross receipts tax onto your customers. However, you will be able to add the mixed beverage sales tax to your customers’ bills. You can do this legally in only two ways:

  1. Add a line item to the customer’s bill that specifically outlines this tax.
  2. Include the mixed beverage sales tax in the beverage’s price.

Informing Your Customers in Writing

If you select option number two, you must let your customers know in writing that the sales price includes the mixed beverage sales tax. You can do this by printing this information on invoices, bills or receipts in the following manner:

  1. State that the mixed beverage sales tax was included in the beverage’s price.
  2. List the amount of the mixed beverage sales tax for each beverage.
  3. List the combined amount of mixed beverage sales taxes that were charged for each beverage.
  4. List the combined amount of mixed beverage sales taxes and ordinary sales taxes charged for each beverage.

When Are These Taxes Due?

When you owe these taxes will depend on how much you owe. For example, if the calculated amount comes to more than $500 in one month or more than $1,500 in one quarter, then you owe these taxes on a monthly basis. If the amount is less than $500 a month or less than $1,500 a quarter, you will need to pay these taxes quarterly.

How to File Mixed Beverage Sales Taxes

How you file your mixed beverage sales taxes will be dependent upon the amount you owed during the last fiscal year. If at that time you paid taxes that amounted to less than $10,000, you can file and pay your taxes in any manner you see fit. You can file electronically or by paper if you paid between $10,000 and $49,999 in taxes. If your tax bill amounted to more than $50,000, you must file electronically.

If you need further help, an official with a Texas license services company will be able to assist you.




Responsible Service and Sale of Alcoholic Beverages in Texas

Restaurants, bars and other retail businesses that serve or sell alcoholic beverages in the state of Texas are required to adhere to the regulations and guidelines set forth by the Texas Alcoholic Beverage Commission (TABC). These rules are intended to protect the welfare of customers and to ensure improved public safety for all residents. Companies that require a Texas liquor license to conduct their business operations must maintain compliance with all state regulations regarding the distribution and sale of alcohol to adults and to minors. Understanding the applicable rules and recommended best practices can ensure that dining and drinking establishments remain in compliance with these regulations and can obtain/retain their Texas alcoholic beverage license.

Responsible Practices

Texas bartenders and wait staff are required to maintain responsible practices and to exercise good judgment when serving alcohol to their customers:

  • Serving alcoholic beverages to minors is strictly prohibited and can result in a one-year jail term, a $4,000 fine or both. When the age of the customer is in question, servers and bartenders are required to obtain positive verification that the individual is over 21 years of age before he or she is served alcoholic beverages. Training programs are available to help wait staff identify likely underage drinkers and to spot the signs of alcohol use in patrons of the drinking establishment. Promotional activities and campaigns should be carefully constructed to avoid targeting underage individuals.
  • Marketing campaigns designed to promote overindulgence in alcoholic beverages may also be violations of TABC regulations. Specifically, campaigns that promote irresponsible drinking practices or that encourage drinking to the point of intoxication are prohibited. These include two-for-one promotions, coupons and incentives for purchasing alcohol but do not include reduced prices and discounts on single drinks or individual containers of alcoholic beverages. Texas law holds bars, taverns and other retail establishments responsible for alcohol consumption that occurs on their premises.
  • Bartenders and servers are required to monitor the alcohol consumption of their customers and to take steps to cut off patrons who have overindulged or who may overindulge if allowed to continue drinking. Similarly, customers are limited to two or fewer drinks at any given time. Groups may be served pitchers, bottles or larger containers of alcoholic beverages to share. Servers must exercise care, however, to ensure that guests do not consume too much in these situations. Additionally, liquor served to customers in open containers cannot be saved for resale or given to customers to take home; it must instead be destroyed by the retail establishment.
  • Retailers, servers and bartenders are subject to charges of criminal negligence if they knowingly serve alcoholic beverages to individuals who are classed as insane or as habitual drunkards. First offenses are classed as misdemeanors and are subject to fines of between $100 and $500 and jail time of one year or less. Repeated offenses can result in fines of up to $1,000 and as much as one year in jail.
  • The display of lewd, immoral or indecent pictures on cards, calendars, posters and other printed materials is prohibited in establishments that currently hold or are applying for a Texas beer license.
  • Falsifying a sworn application for a Texas liquor license is punishable by prison terms of two to 10 years.

The TABC offers a great deal of informational material for retail establishments interested in applying for licensing to serve alcoholic beverages in Texas. By familiarizing themselves with the regulations and provisions of Texas liquor laws, owners of these retail companies can significantly increase their chances of success in obtaining the necessary permits and licenses to carry out their business plans.

Restaurant managers, bar owners and retail outlets can often benefit by seeking the assistance of a professional and experienced firm in navigating the application process and obtaining a Texas alcoholic beverage license. By working with these experts, retailers can avoid unexpected obstacles and can achieve their goals more quickly and effectively in the current regulatory environment.




How to Responsibly Serve Alcohol at Your Restaurant

Serving alcohol at your Houston restaurant has a lot of advantages. Not only can it add to a fun atmosphere and provide your client base with what it wants, but it can also make you a lot of money. On the flip side, serving alcoholic beverages comes with its own set of responsibilities, and failing to serve alcohol responsibly could result in fines, the loss of your Texas beer license, lawsuits and more. Fortunately, following a few tips can help ensure that the fun goes on for everyone who is involved without any major problems popping up.

Follow the Law

First of all, you should make sure to know all of the laws in your area in regards to holding an alcoholic beverage license. Do your research, and make sure that you obtain your license through a reputable company that offers license services. Also, make sure that you periodically do your research to stay abreast of current Texas alcohol laws after you have initially gotten your license. Along with understanding the laws that you are expected to follow as a business owner who serves alcohol within your restaurant, it is also important to learn the laws that your patrons are expected to uphold.

Check IDs

The first and most crucial aspect of serving alcohol responsibly is learning how to check IDs. No matter how convincing a customer might seem, you should check the identification card of anyone who looks younger than 30 years old unless you know for a fact that the person is old enough to consume alcohol.

When checking IDs, make sure that you always keep an eye out for fakes. The ID card should have all of the state seals and holograms on it, and you should check carefully for any alterations or modifications.

Along with making sure that the ID is valid, you should also ensure that the ID actually belongs to the person who is carrying it. Make sure to compare the picture to the face of the customer, and look for a valid signature and date of birth.

One option is to invest in an electronic scanner that checks ID cards. Although these can be a bit costly, they are often worth the cost and can save a lot of headaches.

Maintain Responsible Serving Practices

Remember responsible serving practices at all times, and make sure that your employees are trained in them as well. If someone seems too intoxicated, do not be afraid to cut them off; also, make sure to log your refusals for future reference. It is also a good idea to offer inebriated customers a few glasses of water or a food menu. If someone seems to be getting too intoxicated too quickly, you should consider a “resting period” before serving more drinks, and it is best to err on the side of caution when gauging a customer’s condition.

Do Not Be Afraid to Refuse

As a restaurant owner, you have the right to refuse to serve alcohol to anyone for any reason. If you think that the person’s ID might not be legitimate or if you think someone has had too much to drink, you should not be afraid to say no. Instead, offer water or other non-alcoholic beverages, and invite the customer to order from your menu. If the person becomes hostile, it might be a good time to ask him or her to leave.

Although all of the responsibilities of serving alcohol responsibly might not be fun, it is essential to be careful. By doing so, you can help protect your business and ensure that those who are old enough and who drink responsibly are able to have a good time at your place of business.




The History of Beer in the United States

Beer is one of the largest industries in the United States today. More than 2,000 breweries manufacture the popular drink in facilities located across the country. Some of these breweries are large corporations; others are small microbreweries. They combine to produce 200 million barrels of beer every year. Only the Chinese consume more beer than Americans.

Beer production has had a long, storied history in the United States. The first beer producers within these borders were Native Americans; they had been doing so before Europeans ever landed on American soil. One Native American recipe included maize, birch sap and water. The earliest record of brewing by non native Americans was in 1587, and the Dutch West India Company, a company that existed from 1621-1792, became the first commercial brewery in 1632.

For the next 150 years, beer production in the United States was influenced by European traditions. British-style ales were popular for much of this time period before Germans brought over the lager styles, and companies became pleased with how profitable this type of beer turned out to be. Its longevity was also improved over what local ales offered.

Steam beer evolved in and around San Francisco in the late 1800s. It was produced as the result of an improvised process in order to ensure that low-cost beer was readily available to all of the people who had headed to California during and following the Gold Rush. Anchor Brewing Company would be the sole provider of steam beer in the United States when Prohibition ended.

D.G. Yuengling & Son started operating in 1829. It is the oldest brewing company that is still operating in the United States. This Pennsylvania-based company is also the largest American-owned brewery. Best Brewing was the first company to transport its beer by ferry and rail to cities outside its own metropolitan area. It was founded in Milwaukee in the 1840s and focused much of its shipping on Chicago and St. Louis.

Another company that received its start around this time was Anheuser-Busch. It was founded in 1860. Adolphus Busch started producing Budweiser beer in 1876. This famous product is named for Budweis, Czech Republic, a city that has been known for brewing beer since the 1200s. The company also expanded on Best Brewing’s transportation plans and introduced refrigerated rail cars. This allowed Anheuser-Busch to become the first national brand.

Prohibition obviously hit the industry hard. It lasted from 1920-33, and all sale, production and transportation of beer and other alcoholic products were banned during this time period. Some companies stayed in business by producing products such as malt syrup and soft drinks. The day that beer sales were legalized again, 1.5 million barrels were sold. The overall recovery, however, was gradual until it started taking off during and following World War II.

The craft beer movement started in the 1970s. New Albion Brewing Company was founded in California in 1976; it was the country’s first microbrewery since the end of Prohibition. Jack McAuliffe, its founder, was influenced by the beer he tasted in Scotland when he was stationed there with the U.S. Navy. Although his company only lasted seven years, McAuliffe influenced Ken Grossman and his Sierra Nevada Brewing Company as well as all of the microbreweries to come.

Those looking to open their own microbrewery or any business that manufactures or sells beer need to procure the necessary licenses and permits that are required by their state. For example, businesses in the country’s second-largest state would need to ensure they have a Texas alcoholic beverage license before they can legally sell these beverages. A Texas license service helps assist businesses located in the state secure a Texas beer license and make sure they are ready to start making beer. The licensing process is similar in the other 49 states.